Back to top

Image: Bigstock

Newmont Corporation (NEM) Stock Moves -0.69%: What You Should Know

Read MoreHide Full Article

In the latest trading session, Newmont Corporation (NEM - Free Report) closed at $40.40, marking a -0.69% move from the previous day. At the same time, the Dow lost 0.15%, and the tech-heavy Nasdaq lost 2.33%.

Prior to today's trading, shares of the gold and copper miner had lost 13.32% over the past month. This has lagged the Basic Materials sector's loss of 6.18% and the S&P 500's gain of 1.03% in that time.

Investors will be hoping for strength from Newmont Corporation as it approaches its next earnings release. The company is expected to report EPS of $0.42, down 8.7% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.87 billion, down 6.16% from the year-ago period.

NEM's full-year Zacks Consensus Estimates are calling for earnings of $2.42 per share and revenue of $11.9 billion. These results would represent year-over-year changes of +30.81% and -0.14%, respectively.

It is also important to note the recent changes to analyst estimates for Newmont Corporation. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 8.4% higher within the past month. Newmont Corporation currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Newmont Corporation is currently trading at a Forward P/E ratio of 16.81. This represents a premium compared to its industry's average Forward P/E of 8.69.

We can also see that NEM currently has a PEG ratio of 1.66. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Mining - Miscellaneous was holding an average PEG ratio of 1.8 at yesterday's closing price.

The Mining - Miscellaneous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 163, putting it in the bottom 36% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Newmont Corporation (NEM) - free report >>

Published in